Mortgage Support During Troubled Times

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Last updated on February 2nd, 2021 at 04:11 pm

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Amanda Byford

Author at Compare Closing LLC

Amanda Byford has bought and sold many houses in the past fifteen years and is actively managing an income property portfolio consisting of multi-family properties. During the buying and selling of these properties, she has gone through several different mortgage loan transactions. This experience and knowledge have helped her develop an avenue to guide consumers to their best available option by comparing lenders through the Compare Closing business.

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How to Get Help When you Need it-and How to Pay it Back Later

Many lenders want to provide the support you need, which includes immediate and long term relief for people facing challenging circumstances.

The thought of losing our dream home due to non-payment of our monthly mortgage payments is frightening.

With the Coronavirus pandemic creating turbulence in our day to day functionality and economy and threatening the status of our job may lead to a serious financial challenge leading to foreclosure.

Types of Mortgage

The first step is to identify which type of mortgage do you have. You can either check with your loan servicer or your mortgage documents will give you a brief picture.

The Different Types of Mortgages are:

Fixed-Rate Mortgage – Here the rate is fixed for the life of the loan but if you have an escrow account with your loan servicer or changes in your taxes and insurance might lead to change in your payment.
ARMs – where the rates are adjustable from the beginning so that your patent changes overtime.
Hybrid Adjustable Rate Mortgage – which means the initial few years the payment would be fixed and then it would change into the adjustable loans like the ARMs. In your mortgage document, you might see 2/8 or3/27 or 5/1 or 3/1 hybrid Arms where the 1st number is the no of years the loan has a fixed rate and the 2nd number is how often the rate changes.

It is always suggested to contact your loan servicer if you have any challenge in making your payments so they will provide various options to you.

Making Home Affordable Modification Program (HAMP) is a program for you to get relief where you could get a loan modification option. Another option is checking if you can qualify for refinancing.

A very important thing is to always discuss with your loan servicer in regards to foreclosure prevention if you lag and delay in making your payments.

There are 2 ways of avoiding becoming a defaulter and foreclosure.

Repayment Plan: If you have missed a few payments the loan servicer can give you some fixed time to repay it and add it along with your existing regular payment.
Reinstatement: If you have missed certain payments of your mortgage and have discussed with your loan servicer then they can coordinate with you and give you a fixed date to pay up all your old dues with penalties and late payment fees.

Reference Source: The Province